• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Fair Value Adjustment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Fair Value Adjustment

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 5, 2017 at 3:56 am #375619
    princepanda168
    Member
    • Topics: 8
    • Replies: 2
    • ☆

    Hi Sir,

    let’s say,

    P acquired 60% of S equity on 1 Jan 20X1.
    On Date of Acquisition, the inventory of $800,000 had fair value of $1M, and had been sold during the year end 31 Dec 20X1.

    I wonder, on Date of Acquisition, the S net asset will increase by $200,000 right, so what about at the reporting date (31-Dec-20X1) as it’s all been sold??

    March 5, 2017 at 4:25 am #375626
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    So there will be no adjustment to the fair value of the assets as at reporting date.

    Why?

    Because it’s all been sold – like you said

    The effect of that ‘wrong’ original valuation has been automatically dealt with within the cost of sales calculation. So long as inventory as at 31 December, 2015 is correctly valued there’s no further adjustment necessary

    OK?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Fair Value Adjustment’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • crabtreef on PM Chapter 9 Questions Short-term decision making
  • Abdjr11 on Financial management objectives – ACCA Financial Management (FM)
  • John Moffat on FA Chapter 6 Questions Depreciation
  • Masterodad on FA Chapter 6 Questions Depreciation
  • natashad25 on MA Chapter 3 Questions Presenting Information

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in